Stability Pools

Where Does the Yield from "Earn" Come From?

Yield comes from two primary, sustainable sources:

• Interest Payments: 75% of interest paid by borrowers is distributed to Stability Pool depositors in $USDK.

• Liquidation Gains: Deposited $USDK is used to purchase collateral from undercollateralized Troves at a ~5% discount. These gains are distributed in (staked) ETH.

Importantly, this yield is organic and sustainable free from token emissions or artificial lockups.

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Is There a Lockup Period?

No. Users can withdraw their $USDK from Stability Pools at any time, with no lockups or exit fees.

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What Is the Estimated Yield on "Earn"?

Yields scale with borrower interest rates. Since depositors earn 75% of protocol interest, actual returns can exceed average borrowing rates especially when only a portion of $USDK supply is deposited, creating a natural yield amplification.

This mechanism differentiates Orki from traditional money markets where yields are capped by borrow demand.

Why Are There Multiple Stability Pools?

• Collateral-Specific Markets: Each collateral type (e.g., swETH, rswETH, SWELL) has its own borrow market, with its own Stability Pool and interest dynamics.

• Tailored Risk Exposure: Users can selectively deposit into pools based on their risk appetite and preferred collateral exposure during liquidations.

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How Do Orki's Stability Pools Differ from Liquity V1?

• Multi-Collateral Support: Pools now support LSTs and multiple LRTs.

• Isolated Risk & Yield: Interest and liquidation yield stay siloed within each collateral market.

• User-Defined Rates: Yield is driven by borrower-set interest rates ensuring long-term sustainability and capital efficiency.